O J's Corner : Reflections

Vicious circle

Oil is the ultimate weapon for mankind until it is completely exploited and wiped out. Date palm-oriented economies in West Asia suddenly found themselves economic giants in the nineteen seventies when oil cartels were formed.

Cartels worked out the modalities for dealing with the outside world oil-wise, including its price per barrel. Wars have been fought and king-emperors decimated over matters oil.  It is an irony that oil money had found its way to terrorists as well. Too much money brings mischief, wherever it is. Anyway, that is another matter.

In India, oil import bill is booming as civilian and military uses are sky-rocketing.
Import bill has to be compatible with the prices being levied from consumers.

Oil companies may have been mismanaging or diverting money at the whims and fancies of political regimes or otherwise. Still, the country does not want to be out of the totem pole of the oil scenario, for which there should be a balancing act.

The government says there should be a huge increase in the prices of petrol, diesel, cooking gas and kerosene, if the prices have to be balanced. The oil companies had proposed that there should be increase in prices of certain items by Rs 100 per litre.

The government, of course, could not have thought that steep, for fear of inviting the wrath of the common man, who is compared to a mule, which carries the burden irrespective of its body strength.

To cut the story short, the government has increased the price of petrol by Rs four and diesel by Rs two per litre.

The left parties are in turmoil saying, they are opposed to any hike. They are observing a nation-wide protest day on June 13. The BJP also has not welcomed the price increase.

In democracy, one should expect a lot of cacophony, for without it only totalitarianism would prevail.

However, the left parties are a lucky lot. True, they committed a “historic blunder” by turning aside the invitation by sundry parties to Jyoti Basu to become the Prime Minister.

But they are in an enviable position by supporting the UPA Government from outside. It bestows on them  power without responsibility. They can have their way in many matters without being in the government.

In the present state of affairs, the left parties are the de facto Opposition, even as the NDA is the de jure one.

Oil tactics call for long-term planning. For example, China and other countries are in the oil market scouting for their oil requirements during the next 15 years or so. Suppose there is a war situation in which oil does not flow freely in the international market, the country should not feel harmstrung.

Iran has already sounded out the prospect of destroying oil supply, if it is attacked by the US or its allies.

In the wake of Iran’s intransigence on enriching weapon’s grade uranium, nothing can be ruled out in the international sphere.

History is made not by the people of any country, but by one or two leaders. The dismemberment of Pakistan and creation of Bangladesh, ouster of Saddam Hussein from Iraq, end of Taliban regime in Afghanistan have all been created by the handiwork of particular leaders.

Bin Laden could be the causative figure for a complete re-working of world affairs.

Domestic prices would be on the rise no matter what the international situation is. That is the hard fact. We have to live with an expanding market in all ways.
Politics would not supplement the role of prices. To ensure stability we need firm leaders.